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How much can you borrow with a home equity loan?
How much you can borrow against your home, and why the loan-to-value limit and the lender's maximum decide the answer.
43 sec · Captions available on the player · Presented by AI-generated presenters, with every line taken from the FreeRateUpdate page it answers.
Source: FreeRateUpdate home equity loan calculator page
Transcript
This is FreeRateUpdate News. I'm Edmund Ledger. Let's look at how much home equity you can borrow. Your equity is your home's value minus what you still owe on the mortgage. Lenders won't lend against all of it. Most cap the combined loan-to-value at 80 to 85%. So a $400,000 home with $220,000 owed leaves $120,000 available to borrow at an 85% cap. Pick an amount and a term, and the calculator shows a fixed monthly payment. Limits are usually lower on second homes and rentals, and every lender sets its own. I'm Edmund Ledger, for FreeRateUpdate News.